Slacker, another positive ( thanks for yours)
Expect that some of Samsung's planned share gains will be in the 3G / CDMA arena & enabled by QCOM MSM.
From another thread- no link
>>>>>>>>>>>>>>>
Samsung Electronics Come Out with Scenario to Attack Nokia
Friday, January 04, 2008 By Hong Ki-bum
Samsung Electronics will attack Nokia with $30s’ worth of low-end products in the emerging markets. Nokia accounts for 95% of the low-end products, which cost less than $50. Therefore, by increasing the market share in the low-end products, Samsung wants to chase up Nokia.
On January 3, an industrial source said that Samsung Electronics will release 5~6 items, which cost from $35 to $38, to chase up the global No.1, Nokia. It declares the price war against the world’s largest manufacturer.
Color mobile phones, which cost less than $40, mean that the company secured the profitability by increasing the competitiveness in the manufacturing cost. It has been told that by global sourcing, Samsung can secure $10 as profit in the manufacturing cost of $20 in color mobile phones.
It would be no exaggeration that Samsung chased up Nokia, which has the cost competitiveness by producing the platform based system. It has been told that it could be impossible to chase up the Nokia system. Also, Samsung seems to complete the development of its strategy by establishing the global SCM system and the manufacturing network.
Currently, Nokia has two monochrome mobile phones, 1110 and 1111, which account for 20% of the company’s sales and 95% in the less than $50 product market. These two models are sold at around $40. Nokia’s cheapest color phone, 1200, is sold at $60s.
Therefore, many expert see that if Samsung releases color phones at $30s, it will increase its shares in China, India and Southeast Asia more than the expected.
Therefore, the global mobile phone market will be controlled by Nokia and Samsung. Nokia could lower the price of 1200, its color phone. However, other competitors cannot join the decreasing price trend.
An official of Samsung Electronics said, “This year we will expand the cheapest product line up by releasing 5~6 models of $30s products. This is our ‘ultra low-end’ strategy to chase up Nokia.”
Samsung set the goal of selling 250 million units and accounting for 20% in the market for this year. It targets 25% in terms of the market share in 2010. |
